Web Radio

The Recording Industry Artist's Association has continued to shoot themselves in the foot. Their stance on the debate on web radio royalties will only hurt the music industry, especially if they win.

For those not in the know, the music industry recently came knocking before Congress, looking for a way to pad revenue in difficult economic times. Their proposed solution was to impose a royalty tax on terrestrial radio, and increase the rate on web radio. The proposed rates would destroy all viable forms of the burgeoning web radio business.

It would, truthfully, mark the end of a historically successful business model: artists and labels pay the stations for airtime, not the other way around. It's essentially a form of advertising. This move, however, is going to leave the already struggling radio stations with no alternative but to either be driven into bankruptcy by this decision, or make the move to independent music, something the RIAA does not want, to be sure.

The idea that radio, even web radio stations like Pandora, hurt music revenue is laughable. Most of the music I own today, all legally purchased, I would have never even heard of were it not for Pandora. The RIAA maintains that a web radio listener could use it as a replacement for a music collection, which is frankly untrue.

Note that I don't defend music piracy. The RIAA's lawsuits are outlandish, but there is the ever present air of "Aha! I found a loophole!" in the attitudes of the music pirates.

Thankfully, Congress allowed web radio to survive, in a weakened form, but the RIAA is going to continue to harp about this until either radio, or the recording industry, is destroyed.